Delayed flights can be difficult to deal with, especially if it means you can’t fly until the next day. Like  many of us, contributing writer Caroline O’Connell has experienced this scenario firsthand—but only recently discovered a relatively new rule that compensates passengers for delays in Europe. Find out more about the rule, what it covers, and how to apply. 

Most travelers don’t know that the European Union (EU) passed a law awarding all passengers flying in their airspace monetary compensation for delayed flights. In some cases, we’re talking big bucks. Air Canada paid me $817 because my flight from Paris to Los Angeles was canceled and rescheduled for the next day (due to technical problems with the plane).

I learned about this law by chance while standing in the 90-minute line for the new flight, when a fellow passenger told me about “EC 261/2004.” Air Canada agents handed out vouchers for $150 toward a future flight but didn’t mention this regulation (a small sign was posted with EC 261/2004, but didn’t include an explanation of what it covered). Here is what you need to know for your next trip to Europe:

What It Covers

The financial compensation varies depending on the time of the delay (or cancelation) and the length of the flight. For delays on shorter flights in Europe, the compensation is €250 to €400. For longer flights from Europe to the U.S. that are delayed more than four hours, the compensation is €600 (which is around US$800, depending on the exchange rate). Details are on the official website.

These delays must be the fault of the airline (i.e. a mechanical breakdown) and don’t qualify for compensation in “extraordinary circumstances” (i.e. extreme weather). In addition, if your flight is delayed overnight, the airline is also required to cover your meals and hotel (which Air Canada did in my case).

What Airlines are Subject to the Regulation & The Statute of Limitations

All airlines departing from Europe are covered by this rule, including all U.S. airlines. If you are flying from the U.S. to Europe on a European airline and your departure has a long delay or cancelation, that is also covered.

The law was passed in 2004, but there were legal challenges and clarifications, so it didn’t become widely implemented until a few years ago. If you took a flight in the last two years that fit the criteria, you should be able to have your claim honored.

How To Apply

You need to fill out the seven-page “Air Passenger Rights EU Complaint Form” and mail it to the airline. When filling out the form, include your email address, so the airline can reply to you directly.

It probably won’t be easy to find the airline’s address (it took me a half hour on the Air Canada site before I located it on an obscure page). Keep a copy of the completed form and all documentation from your flight, including boarding passes and your ticket number.

What Happens Next?

Air Canada responded within three weeks and acknowledged that my situation fell under EC 261/2004. They offered to give me a €900 voucher towards a future flight on Air Canada, but I opted for the €600 payment (they wrote the check on a U.S. bank in U.S. dollars, so I had no trouble depositing it).

If the airline claims that your situation doesn’t apply, you can take your case to the National Enforcement Body in the country where the delay occurred (or, in the case of a flight from the U.S. to Europe on a European carrier, the country where that carrier is based). Click here for the contact information for the Enforcement Bodies.

Armed with this knowledge, if you do encounter a long delay, at least you’ll know that you will be receiving monetary compensation for the inconvenience.

NOTE:  If you’re wondering if this applies to mileage tickets as well, the answer is yes. My ticket on Air Canada was “purchased” with miles from my United account (the airlines are affiliated).

For more information about airlines and airports, check out:

• The Controversy Over Reclining Airplane Seats
• The Truth About Airline Ticket Prices
• 4 Ways to Get Around the TSA Liquids Rule

By Caroline O’Connell for PeterGreenberg.com